The NZD/USD has experienced a slight decrease at the end of the week, losing 0.21% as buyers appear to have lost momentum. Despite this, the short-term positive outlook remains intact, with the Relative Strength Index (RSI) showing a neutral position and a positive outlook. However, there are signs of a flattening trend on the horizon as the Moving Average Convergence Divergence (MACD) indicators also suggest a decrease in momentum.
The daily chart for the NZD/USD reflects a subtle change in buyers’ momentum, with a decrease in MACD green bars and a neutral RSI indicating a shift towards a bearish grip. The hourly indicators paint a balanced picture for the session, showing a lack of clear direction for either party.
A closer look at the NZD/USD reveals that it is currently trading below the crucial 100 and 200-day Simple Moving Averages (SMAs), suggesting a bearish outlook. The sellers’ strength is evident at the 200-day SMA barrier, reinforcing the short-term bearish trend as buyers were rejected in Friday’s session. However, if the bulls manage to hold the key short-term 20-day SMA, the downside in the upcoming sessions will be limited.
Overall, the NZD/USD is facing a challenging period with a potential bearish trend on the horizon. The daily and hourly charts indicate a decrease in buyers’ momentum, while the SMA indicators highlight a bearish outlook. Despite this, the short-term positive outlook remains intact, making it crucial for buyers to hold the 20-day SMA to limit the downside. Traders should closely monitor the RSI and MACD indicators for any signs of a reversal in the current trend.
